SOME BASIC ECONOMICS

As you all invest your hard earned dollars, pounds and various other currencies you probably rarely have to consider the number of dollars that are actually in existence. In everyday life it is unimportant and only truely matters in times where the number of units of a particular currency suddenly increases causing inflation.

Inflation is caused by the sudden increase in the amount of a currency, this means the currency is more easy to get ahold of and is therefore less valuable, in other words less loafs of bread can be bought with the same amount of dollars.

If people believe that the amount of a currency around will keep going up they will sell there currency for gold or some other safe currency which adds more of that currency onto the market, this leads to the currency becoming eventualy worthless, this is hyperinflation.

Inflation is usualy controlled by interest rates, high interest rates encourages saving and so removes money from circulation and places it into bank accounts where banks invest it. This however does mean that anyone with a loan or morgage pays more interst upon them and so this can damage business that often operate in debt.

NOW TO THE POINT

Since 1995 the usa money supply (the amount of currency available, M3) has been increasing by about 10% a year due to the usa printing dollars, this has been sustainable only by having people in foreign countries buying dollars and removing them from the US market. However eventually inflation will kick in decreasing the value of the dollar. See the graph below for the numbers.

http://www.321gold.com/editorials/ba...ie041406/3.gif

In a recent paper by a top economist who works at the federal reserve published the document below it describes that the only way to avoid the economic collapse of the dollar due to hyperinflation is to increase retail tax to 33% and variouse other moves which could well lead to rioting on the streets (These measures will probably never be implemented).

http://research.stlouisfed.org/publi.../Kotlikoff.pdf

The collapse of the dollar will lead toa domino effect causing a world wide economic collapse, this will massively devaluemost if not all currencies. However gold if it reacts as it has in the past will rocket in value as people buy it because they know it will always have value and so not suffer inflation, you can't print gold!!!

Banned.

How to save yourself: Buy a gun.

Increases in population may also have prolonged the inevidable. If hyperinflation is accompanied by a massive recession (Does it work that way? I´m not an economist) there may be quite alot of death happening too. I doubt overpopulation is sustainable. So yeah, buy gold and guns. Or buy gold guns!

Oh, and buy actual, real gold. Make sure you physically have the ingots otherwise you´ll get screwed when the shit hits the economic fan.

The problem with this thread is that it implies that the people of totse actually give a shit about whether they need saving or not.

It seems apparent that the OP has been smoking something - perhaps crack.

~GMT~

Fuck money. I intend to go to the mountains and try to remain self-sufficient once society collapses. All money will be is a reason for someone to kill you.